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Our apartment complex’s caretaker has sold his business to someone on the other side of Melbourne. The commute is too far to return to just bring the bins in. A tenant has agreed to do this for $10.00 a week. She has completed an ATO Statement by Supplier form but the Owner Corporation manager refuses to pay her as she has no insurance or ABN number. What is the workaround? Is there a waiver she can sign? What would the wording be? Thanks.
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Why isn’t the new caretaker responsible for arranging this?
They took on the role (probably paying a lot for it) knowing where the building was located, and where they reside.
Another expectation is that the cost is deducted from the fee currently paid to the caretaker. Otherwise you’ll be paying twice.
Also, the new caretaker should be paying the OC Manager for their time in handling this matter.
Oh, and when the bins aren’t bought in, in a timely manner; will the new caretaker arrange for immediate remediation? Or will the OC potentially be liable for council fines when the bins are left out too long?
Three things: isn’t this for the new business owner to sort out, at their cost? And if the person working for $10 is a resident would the activity not be covered under your general insurance? A simple check with the insurer would confirm such. And getting an ABN is a pretty standard free thing and very easy to get, so they should just register to get one. But for a tiny $120 a year in income that might be swallowed up in end of year extra accounting fees to keep the ATO on-side.
One of my pet peeves is when uninformed people quote the wrong rules.
Firstly there is no requirement for a person to have an ABN. Whether or not they have an ABN does not make them necessarily an employee. The ATO has a whole webpage defying a contractor vs employee.
Secondly the strata manager can pay the PERSON. The person should provide theirvTFN. The strata manager then withholds tax and reports it to the ATO.Its just that the strata manager is trying to take the easy way out.
And BTW, a principle of law is that once a lawful service is provided, the provider has to be paid, so the strata manager is breaking the law .
Three things: isn’t this for the new business owner to sort out, at their cost? And if the person working for $10 is a resident would the activity not be covered under your general insurance? A simple check with the insurer would confirm such. And getting an ABN is a pretty standard free thing and very easy to get, so they should just register to get one. But for a tiny $120 a year in income that might be swallowed up in end of year extra accounting fees to keep the ATO on-side.
As I understand it:
Strata insurance usually provides cover for volunteer/unpaid workers. Once you start paying them they become employees or contractors.
For employees you would require workers compensation coverage.
Public liability insurance policies usually require that anyone operating a business within the insured premises has their own PL coverage.
Perhaps the tenant could “volunteer” to do the work, but receive “reimbursement for expenses” from the OC?
Perhaps the tenant could “volunteer” to do the work, but receive “reimbursement for expenses” from the OC?
I’m still to understand why the OC, and by definition the owners, should pay again for a service that they’re already paying the Caretaker to provide.
This is the responsibility of the caretaker and the manager must step up and insist they fulfil their duties.
If the “business” has a new owner, does that invalidate any agreement the OC had with the previous caretaker? Has the new owner officially notified the OC?
Perhaps time to call new tenders for the service?
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